Biggests Influences on Sentiment: The Economy and the Markets

This week’s AAII Sentiment Survey special question asked AAII members what factors are most influencing their six-month outlook for stocks. Several members listed more than one factor. The economy topped the list, named by 28% of respondents. Many of them (17% of all respondents) cited sustained growth or expectations for continued growth. The market was a very close second, named by slightly more than 27% of all respondents. About 9% of all respondents said valuations were high, though there were others who were encouraged by the market’s resiliency and upward momentum. The geopolitical picture, especially Iraq and Russia, was cited by just fewer than 17% of all respondents. Frustration with politics also remained a common refrain, with 13% of respondents expressing displeasure with either political infighting or the president’s policies.